Fan Site: Inspired, Not Endorsed, By Rakesh Jhunjhunwala

Traders Mint Fortune, While Investors Wail At Losses, After NAMO’s Victory



The extreme volatility arising from the election results gave astute traders a golden opportunity to rake in massive gains. However, investors cut a sorry face as usual because all of their gains were snatched away at the EOD




Textbook Example Of ‘Buy On Rumour, Sell On News’

Today, many novices in Dalal Street were baffled as to why the Sensex and Nifty crashed in such a savage manner even after it was confirmed that the Exit Polls were right and NAMO would be re-elected with an absolute majority.

In the morning session, the Sensex and Nifty surged like rockets to reach record heights of 40,000 and 12,000 respectively but soon thereafter turned tail and plummeted to the ground.

However, I was not baffled at all.

This is because several astute traders had already sounded the warning that the confirmation of the news about NAMO’s victory would lead to a bout of profit booking, which would send the Indices spiraling downwards.

The same theory was formulated by Anuj Singhal of CNBCTV18.

He rightly theorized that the good news is already baked in the price and that Nifty would be unable to hold on to the coveted level of 12,000.

It may be recalled that even Samir Arora had warned several weeks ago that much of the money is “momentum money” of FIIs, which would be withdrawn as soon as the event is over (see Even If NAMO Wins, Markets Will Correct).

It is notable that even the India VIX (Volatility Index) crashed like a ton of bricks during the announcement of the results, implying that it was the excitement about the results which was holding the market in place.

indiavix



Traders make Rs. 1.8 crore plus

While investors sported glum faces, traders were beaming with joy.

P R Sundar, an authority on futures and options, came at the top with a massive gain of Rs. 1.80 crore.

He revealed that this is his “highest one day profit“.

He humbly dedicated it to NAMO.

Mitesh Patel, the trader who claims to have mastered Nita Ambani‘s secret mantra, had to stay content with a relatively meager gain of Rs. 3 lakh.

He claimed that he could have effortlessly raked in Rs. 30 lakh from short-selling futures and options but was unfortunately denied leverage by the broker.

Other traders also posted screenshots of impressive gains from their exploits of the day.

Zerodha lives up to expectations, serves record of 15 million orders

There was a lot of trepidation amongst traders as to whether Zerodha would be able to cope with the massive volumes that would be generated on the eventful day.

It may be recalled that during the high volatility period of the India-Pak hostility, Zerodha had conked off and created a lot of frustration for traders (see Zerodha Held Liable To Compensate Traders For Loss Due To “Network Failure”).

However, today, Zerodha’s performance was flawless.

It released statistics which show that a mind-boggling 1 million unique users had placed 15+ million (1.5 crore) orders.

Even assuming the ARPO (average revenue per order) is a paltry Rs. 20, Zerodha would have raked in a profit in excess of Rs. 30 crore.

No doubt, we have to compliment Nithin Kamath (CEO), Kailash Nadh (CTO) and Karthik Rangappa (HOE) for the stupendous task (read their AMA on Reddit).





NAMO’s victory will transform India into a ‘global superpower‘ with a $5 Trillion economy

Billionaires Uday Kotak and Rashesh Shah rushed to congratulate NAMO.

They opined that India will now be transformed into a ‘global superpower‘ and that its economy will swell from $3 Trillion to $5 Trillion.

Porinju Veliyath and Sunil Singhania pointed out that the impact of NAMO’s victory is that mid-cap and small-stocks will now come back into demand and resume their multibagger journey.

Which are the best stocks to buy now?

I have already drawn attention to ten high-quality stocks which have been cherry-picked by leading experts as being big beneficiaries of NAMO’s victory (see Top 10 Stocks To Buy Now To Prosper From NAMO’s v.2 Regime).

Each one of the chosen stocks is fail-safe and destined to give handsome gains to investors!









investments    , , , , , , , , , , , , , , , , , , , , , , , , ,

No Comments Yet

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 562 other subscribers
Disclaimer: This is a Fan Site in Rakesh Jhunjhunwala's name. Rakesh Jhunjhunwala is not associated with us and is in no way aware, accountable or responsible for what is stated here. Further, nothing here constiutes investment advice for you to act on. Also, we have a vested interest, and are extremely biased, in everything that we say. So Mind It!